Market Volatility Builds as Bitcoin Reclaims Bullish Mode
Bitcoin has reclaimed its 'strong bullish' mode after popping out of and back into the Cloud, but it remains below key resistance at $80,443. The cryptocurrency's recent dip inside the Cloud makes it more likely to move back in and consolidate in a bearish manner.
Ethereum, on the other hand, has remained 'strong bullish' as long as it stays above the Cloud. Its outperformance compared to Bitcoin is one reason why many altcoins are participating in the current market trend.
The US Dollar Index (DXY) continues its upward momentum ahead of key events, including a vote on the CLARITY Act and an upcoming Fed decision. DXY's recent TBT Bullish Divergence Cluster remains a strong bullish reversal signal, but analysts view daily overbought RSI as a possible pivot that could send DXY lower.
The VIX index has printed a third 'TBO Close Short' in Monday's trading session, which typically precedes increased volatility. This, combined with multiple stock-index Close Longs, suggests a potential broad dip-buying opportunity without guaranteeing its timing.